(WXMI) — The tariff talk has been a point of emphasis for the current administration in office, and it took another turn Monday evening. President Trump announced he is imposing tariffs on foreign steel and aluminum to a flat rate of 25 percent, stating that the change will happen "without exceptions or exemptions." This decision aims to support struggling American industries competing with imported materials.
Trump previously imposed steep tariffs on foreign steel and aluminum during his first presidency, using similar arguments to justify the action. The new tariffs eliminate exemptions granted to certain countries and increase the cost of importing aluminum.
When asked about potential retaliation from other countries targeting American companies, Trump said, "I don't mind."
The announcement has generated questions among American businesses that are involved in the industry, like Hascall Steel Company, a Grandville distributor that has operated in the industry for more than five decades.
The CEO of Hascall Steel, Dag Hascall, reflected on his history in the business, stating, “By age 10, we started renting the machine, and we would get steel out of Lansing, out of the old Oldsmobile plant, and make simple parts like folding chair seats or the bottom of gas cans.”
He believes that the tariffs could benefit the steel industry. “Tariffs are good for our steel industry in general. The investment required to go and make a rehab of a steel mill, you know, are billions of dollars, and you really can't afford short-term thinking when you're investing at that level.”
While some see the positive outlook, Associate Professor of Finance Matthew Ross from Western Michigan University noted the effects these tariffs could have in Michigan.
“Michigan doesn't really produce very much in the way of steel or aluminum, very little. So Michigan has to import almost all of it.” He added that a 25% tariff on major suppliers like Canada, the number one importer of steel and aluminum into the U.S., could have greater implications for Michigan, which has strong trading ties with Ontario.
“This could very well be detrimental for both the economies of Michigan and Ontario, maybe even more than other provinces and states in Canada and the U.S.,” Ross stated.
The ongoing shifts in tariff policies emphasize the uncertainty in the market. “Say, four years down the road, we get a new president and he doesn't believe in tariffs," Hascall said. "Like it did this last year, where you would start way up here and end up declining. If that decline doesn't happen right away, which is catastrophic, you might just have a declining market for a couple of years."
For now, the tariff announcement is viewed positively by U.S. companies like Hascall Steel. “With today's announcement, we have what the news did in this market. So this is a $50-a-ton rise.”
The situation continues to evolve as businesses and economists assess the potential impact of these tariffs on the steel and aluminum industries.
The tariffs will take effect early next month, allowing for the possibility that the Trump administration could negotiate with specific countries, as it did before imposing tariffs on Mexico and Canada.
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